General Motors 2013 Annual Report Download

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Table of contents

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  • Page 17
    ... by our Board of Directors and will be paid out of funds legally available for that purpose. Our payment of dividends in the future will depend on business conditions, our financial condition, earnings, liquidity and capital requirements, the covenants in our secured revolving credit facilities and...

  • Page 18
    ... 31, 2012 and 2011 we used the two-class method for calculating earnings per share as the Series B Preferred Stock was a participating security due to the applicable market value of our common stock being below $33.00 per common share. Refer to Note 22 to our consolidated financial statements for...

  • Page 19
    ...a charge to earnings of $0.4 billion. Our Series A Preferred Stock was reclassified from temporary equity to permanent equity in the year ended December 31, 2010. Management's Discussion and Analysis of Financial Condition and Results of Operations General Motors Company (sometimes referred to as...

  • Page 20
    ..., based upon retail vehicle sales, in Asia/Pacific, Middle East and Africa at 9.5%. In 2013 we had market share of 14.3% in China. GMIO records the wholesale unit volume and financial results of Chevrolet brand vehicles that it distributes and sells in Europe. Our international operations' results...

  • Page 21
    ... shares of Series B Preferred Stock mandatorily converted into 137 million shares of our common stock and will result in future annual cash preferred stock dividend savings. Refer to Note 21 to our consolidated financial statements for additional information. Through ongoing discussions with taxing...

  • Page 22
    ... to close in 2014 for approximately $0.9 billion. Refer to Note 3 to our consolidated financial statements for additional information on these acquisitions. Consolidated Results Total Net Sales and Revenue (Dollars in Millions) Years Ended December 31, 2013 Year Ended 2013 vs. 2012 Change Favorable...

  • Page 23
    ...31, 2013 GM Financial Total sales and revenue increased due primarily to: (1) increased finance charge income of $1.0 billion due to growth in the portfolio resulting from the acquisition of Ally Financial's international operations and increased originations; and (2) increased leased vehicle income...

  • Page 24
    ... debt outstanding in 2012 compared to 2011; and (4) an increase in employee costs of $0.1 billion due primarily to a 9% increase in employee headcount to support growth in GM Financial's business. Automotive Selling, General and Administrative Expense Years Ended December 31, 2013 2012 2011 Year...

  • Page 25
    ...gain on the purchase of GMAC de Venezuela in 2012 that did not occur in 2013. In the year ended December 31, 2012 Interest income and other non-operating income, net remained flat due primarily to: (1) a gain of $0.3 billion related to the sale of our Ally Financial preferred stock in 2011 which did...

  • Page 26
    ... tax allocation from Accumulated other comprehensive loss to Income tax expense (benefit) of $0.6 billion related to the U.S. salary pension plan. Refer to Note 18 to our consolidated financial statements for additional information related to our income tax expense (benefit). 24 2013 ANNUAL REPORT

  • Page 27
    ..., Net income attributable to stockholders or operating cash flow. Due to these limitations, these nonGAAP measures are used as supplements to U.S. GAAP measures. Management believes income before income taxes provides meaningful supplemental information regarding GM Financial's operating results. GM...

  • Page 28
    ...Gain on sale of equity investment in PSA ...Noncontrolling interests related to redemption of the GM Korea mandatorily redeemable preferred shares ...Pension settlement charges ...Charges related to PSA product development agreement ...Income related to insurance recoveries ...Total adjustments to...

  • Page 29
    ... ...Impairment related to Ally Financial common stock ...Gain on sale of Ally Financial preferred stock ...Charges related to GM India ...Gain on extinguishment of debt ...Total adjustments to automotive EBIT ...$ GM North America Years Ended December 31, 2013 2012 (Dollars in millions) 1,645...

  • Page 30
    ... million vehicles in the year ended December 31, 2013, representing a 1.1% decrease compared to the corresponding period in 2012. Outlook We have formulated a plan and are implementing various actions to strengthen our operations and increase our competitiveness. The key areas include investments in...

  • Page 31
    GENERAL MOTORS COMPANY AND SUBSIDIARIES GME Total Net Sales and Revenue and EBIT (Loss)-Adjusted Years Ended December 31, 2013 Year Ended 2013 vs. 2012 Change Favorable/ 2012 (Unfavorable) % (Dollars in millions) Variance Due To Volume Mix Price Other (Dollars in billions) Total Total net sales ...

  • Page 32
    ... are completed. Refer to Note 19 of our consolidated financial statements for additional information. GM India In the three months ended December 31, 2013 we performed a strategic assessment of GM India in response to lower than expected sales performance of our current product offerings in India...

  • Page 33
    ... part of our China growth strategy. The following tables summarize certain key operational and financial data for the China JVs (dollars in millions, vehicles in thousands): Years Ended December 31, 2013 2012 2011 Total wholesale vehicles (a) ...Market share ...Total net sales and revenue ...Net...

  • Page 34
    ..., parts and accessories revenue of $0.1 billion. GMIO EBIT-Adjusted In the year ended December 31, 2013 EBIT-adjusted decreased due primarily to: (1) unfavorable net vehicle mix primarily in Middle East and Australian markets; (2) unfavorable pricing excluding $0.2 billion sales incentive related...

  • Page 35
    GENERAL MOTORS COMPANY AND SUBSIDIARIES GMSA Total Net Sales and Revenue and EBIT-Adjusted Years Ended December 31, 2013 2012 (Dollars in millions) Year Ended 2013 vs. 2012 Change Favorable/ (Unfavorable) % Variance Due To Volume Mix Price Other (Dollars in billions) Total Total net sales and ...

  • Page 36
    ... on the purchase of GMAC de Venezuela CA. GM Financial Years Ended December 31, 2013 2012 2011 Year Ended 2013 vs. 2012 Change Amount % (Dollars in millions) Year Ended 2012 vs. 2011 Change Amount % Total revenue ...Provision for loan losses ...Income before income taxes ...Average debt outstanding...

  • Page 37
    ... Net income (loss) attributable to stockholders (dollars in billions): Years Ended 2013 vs. 2012 2012 vs. 2011 Deferred tax asset valuation allowance release in U.S. and Canada ...$ Other tax related matters ...Impairment of investment in Ally Financial common stock ...Premium paid to purchase...

  • Page 38
    ... sector, asset class, issuance or security type. Substantially all of our current investments in debt securities are with A/A2 or better rated issuers. We use credit facilities as a mechanism to provide additional flexibility in managing our global liquidity and to fund working capital needs at...

  • Page 39
    ... automotive cash flows from operating, investing and financing activities (dollars in billions): Years Ended December 31, 2013 2012 2011 Operating Activities Net income ...Depreciation, amortization and impairments ...Pension & OPEB activities ...Working capital ...Deferred tax valuation allowance...

  • Page 40
    ...on operating leases of $0.5 billion. Years Ended December 31, 2013 2012 2011 Investing Activities Capital expenditures ...$ Liquidations (acquisitions) of marketable securities, net ...Sale of our investment in Ally Financial ...Sale of our investment in Delphi ...Other ...Cash flows from investing...

  • Page 41
    ...GM Financial's primary uses of cash are purchases of finance receivables and leased vehicles, funding of commercial finance receivables, business acquisitions, repayment of secured and unsecured debt, funding credit enhancement requirements for secured debt, operating expenses and interest costs. GM...

  • Page 42
    ... increased funding of commercial finance receivables of $19.9 billion and purchase of consumer finance receivables of $4.0 billion; (2) net cash payment of $2.6 billion made in the current year on the acquisitions of Ally Financial international operations; (3) increased purchase of leased vehicles...

  • Page 43
    ... the Ally Financial international operations acquisitions. In the year ended December 31, 2012 net cash provided by financing activities increased by $0.8 billion due primarily to a decrease in repayment of debt. Defined Benefit Pension Plan Contributions Eligible U.S. salaried employees hired prior...

  • Page 44
    ... our consolidated financial statements for the change in benefit obligations and related plan assets. The following table summarizes net benefit payments expected to be paid in the future, which include assumptions related to estimated future employee service (dollars in millions): Pension Benefits...

  • Page 45
    .... Pension Funding Requirements We have implemented and completed a balance sheet derisking strategy, comprising certain actions related to our U.S. salaried pension plan. These actions included payment of lump-sums to retirees, the purchase of group annuity contracts from an insurance company and...

  • Page 46
    ... pension plans with resulting changes to the expected long-term rate of return on assets. The weighted-average long-term rate of return on assets increased from 5.8% at December 31, 2012 to 6.5% at December 31, 2013 due primarily to higher yields on fixed income securities. Another key assumption...

  • Page 47
    ... effect on our financial condition and results of operations. At December 31, 2013 we retained valuation allowances of $10.8 billion against deferred tax assets primarily in GME and South Korea business units with losses and in the U.S. and Canada related primarily to capital loss tax attributes and...

  • Page 48
    ...-lived assets at GM India. As a result in the three months ended December 31, 2013 we recorded total asset impairment charges of $1.1 billion in GMIO. Refer to Notes 9 and 11 to our consolidated financial statements for additional information on the impairment charges recorded and related fair value...

  • Page 49
    GENERAL MOTORS COMPANY AND SUBSIDIARIES dealer inventory eligible for the incentive program is determined and a reduction of Automotive net sales and revenue or increase to Automotive cost of sales is recorded in the period in which the program is announced. If the actual number of affected ...

  • Page 50
    ... sale of our products, the cost thereof or applicable tax rates; Costs and risks associated with litigation; Significant increases in our pension expense or projected pension contributions resulting from changes in the value of plan assets, the discount rate applied to value the pension liabilities...

  • Page 51
    ... all quoted foreign currency exchange rates would be $195 million and $671 million at December 31, 2013 and 2012. We are exposed to foreign currency risk due to the translation and remeasurement of the results of certain international operations into U.S. Dollars as part of the consolidation process...

  • Page 52
    ... income and lease contracts; and (2) interest paid, is affected by changes in interest rates as a result of GM Financial's dependence upon the issuance of variable rate securities and the incurrence of variable rate debt to fund purchases of finance receivables and leased vehicles. Credit Facilities...

  • Page 53
    ... table summarizes GM Financial's interest rate sensitive assets and liabilities, excluding derivatives, by year of expected maturity and the fair value of those assets and liabilities at December 31, 2012 (dollars in millions): Years Ended and Ending December 31, 2013 2014 2015 2016 2017 Thereafter...

  • Page 54
    ... with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2013 of the Company and our report dated February 6, 2014 expressed an unqualified opinion on those financial statements and included...

  • Page 55
    ... Consolidated Balance Sheets of General Motors Company and subsidiaries (the Company) as of December 31, 2013 and 2012, and the related Consolidated Statements of Income, Comprehensive Income, Cash Flows and Equity for each of the three years in the period ended December 31, 2013. These financial...

  • Page 56
    ... Data GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS (In millions, except per share amounts) 2013 Years Ended December 31, 2012 2011 Net sales and revenue Automotive ...GM Financial ...Total ...Costs and expenses Automotive cost of sales ...GM Financial operating and...

  • Page 57
    GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Years Ended December 31, 2013 2012 2011 Net income ...Other comprehensive income (loss), net of tax (Note 21) Foreign currency translation adjustments ...Cash flow hedging gains (losses), net ......

  • Page 58
    ...leases, net (Note 7) ...Deferred income taxes (Note 18) ...Other current assets ...Total current assets ...Non-current Assets Restricted cash and marketable securities (Note 5) ...GM Financial receivables, net (Note 4)(including SPE receivables of $11,216 and $6,458; Note 12) ...Equity in net assets...

  • Page 59
    GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years Ended December 31, 2013 2012 2011 Cash flows from operating activities Net income ...Depreciation, impairment charges and amortization expense ...Foreign currency remeasurement and transaction losses ...

  • Page 60
    GENERAL MOTORS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EQUITY (In millions) Common Stockholders' Series B Additional Series A Paid-in Preferred Preferred Common Stock Stock Capital Stock Accumulated Other Retained Comprehensive Noncontrolling Earnings Income (Loss) Interests Total ...

  • Page 61
    ... assets and liabilities to the Motors Liquidation Company GUC Trust (GUC Trust). We design, build and sell cars, trucks and automobile parts worldwide. We also provide automotive financing services through General Motors Financial Company, Inc. (GM Financial). We analyze the results of our business...

  • Page 62
    ...as reductions to Automotive net sales and revenue when announced. Vehicle sales to daily rental car companies with guaranteed repurchase obligations are accounted for as operating leases. Estimated lease revenue is recorded ratably over the estimated term of the lease based on the difference between...

  • Page 63
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Allowance for Doubtful Accounts The following table summarizes activity in our allowance for doubtful accounts and notes receivable (dollars in millions): Years Ended December 31, 2013 2012 2011 Balance...

  • Page 64
    ... allowance is estimated based on the present value of the expected future cash flows of the receivable discounted at the loan's original effective interest rate. The finance receivables acquired with Ally Financial international operations that were considered to have no deterioration in credit...

  • Page 65
    ...or market. Market, which represents selling price less cost to sell, considers general market and economic conditions, periodic reviews of current profitability of vehicles, product warranty costs and the effect of current and expected incentive offers at the balance sheet date. Market for off-lease...

  • Page 66
    ... and the quoted market price for our common stock are used to corroborate the results of the discounted cash flow method. Our reporting units are GMNA and GME and various reporting units within the GMIO, GMSA and GM Financial segments. Due to the integrated nature of our manufacturing operations and...

  • Page 67
    ... Plan Asset Valuation Cash Equivalents and Other Short-Term Investments Money market funds and other similar short-term investment funds are valued using the net asset value per share (NAV). Prices for short-term debt securities are received from independent pricing services or from dealers who make...

  • Page 68
    ... sale price, official closing price or publicly available NAV (or its equivalent) on the primary market or exchange on which they are traded and are classified in Level 1. Investments in private investment funds (including hedge funds, private equity funds and real estate funds) are generally valued...

  • Page 69
    ...liability method is used in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements using the statutory tax rates in effect for the year...

  • Page 70
    ...operating income, net. Foreign currency transaction and remeasurement losses were $350 million, $117 million and $55 million in the years ended December 31, 2013, 2012 and 2011. Recently Adopted Accounting Principles On January 1, 2013 we adopted Accounting Standards Update (ASU) 2013-02, "Reporting...

  • Page 71
    ... and servicing costs and discounted using a discount rate commensurate with risks and maturity inherent in the finance contracts. The contractually required payments receivable, cash flows expected to be collected and fair value for finance receivables acquired with deteriorated credit quality...

  • Page 72
    ... (dollars in millions): Acquired Operations' Amounts Included in Results For Year Ended December 31, 2013 Pro Forma-Combined for Years Ended December 31, 2013 December 31, 2012 Total net sales and revenue ...Net income attributable to stockholders ...Acquisition of SAIC GM Investment Limited...

  • Page 73
    ...value. GM Financial reviews its pre-acquisition finance receivables portfolios for differences between contractual cash flows and the cash flows expected to be collected to determine if the difference is attributable, at least in part, to credit quality. In the years ended December 31, 2013 and 2012...

  • Page 74
    ... (dollars in millions): December 31, 2013 December 31, 2012 Outstanding recorded investment ...Less: allowance for loan losses ...Outstanding recorded investment, net of allowance ...Unpaid principal balance ...Commercial Finance Receivables $ $ $ 767 $ (103) 664 $ 779 $ 228 (32) 196 232 GM...

  • Page 75
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The credit lines for Group VI dealers are suspended and no further funding is extended to these dealers. Note 5. Marketable Securities The following table summarizes information regarding marketable ...

  • Page 76
    ..., supplies and work in process ...Finished product, including service parts ...Total inventories ...Note 7. Equipment on Operating Leases, net Automotive $ $ 5,872 8,167 14,039 $ $ 6,560 8,154 14,714 Equipment on operating leases, net is composed of vehicle sales to daily rental car companies...

  • Page 77
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes depreciation expense and impairment charges related to Equipment on operating leases, net (dollars in millions): Years Ended December 31, 2013 2012 2011 Depreciation ...

  • Page 78
    ... to the sale in Equity income and gain on investments. Our existing supply contracts with New Delphi were not affected by this transaction. Investment in GM India In March 2011 the fair value of our investment in GM India was determined to be less than its carrying amount. The loss in value was...

  • Page 79
    ...273 22,674 14,505 1,514 16,019 1,056 Years Ended December 31, 2013 2012 2011 Summarized Operating Data China JV's net sales ...Others' net sales ...Total net sales ...China JV's net income ...Others' net income (loss) ...Total net income ... $ $ $ $ 38,767 1,830 40,597 3,685 50 3,735 $ $ $ $ 33...

  • Page 80
    ... notes receivable, net ...Accounts payable ...Deferred revenue and customer deposits ... $ $ $ 756 183 32 $ $ $ 1,668 167 46 Years Ended December 31, 2013 2012 2011 Cash Flows Operating ...Investing ...Note 9. Property, net The following table summarizes the components of Property, net (dollars...

  • Page 81
    ...charges and amortization expense related to Property, net, recorded in Automotive cost of sales, GM Financial operating and other expenses, and Automotive selling, general and administrative expense (dollars in millions): Years Ended December 31, 2013 2012 2011 Depreciation and amortization expense...

  • Page 82
    ...real estate taxes. (c) Represents the discount rate for the specific property based on local market sources and available benchmarking data. (d) Represents estimated gross cost to demolish and clear the structures on the property as a percentage of replacement cost new. (e) Represents estimated loss...

  • Page 83
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The fair value estimates for GM India, Holden and GME real and personal property are based on a valuation premise that assumes the assets' highest and best use are different than their current use based ...

  • Page 84
    ... than expected sales performance of our current product offerings in India, higher raw material costs, unfavorable foreign exchange rates and recent deterioration in local market conditions. Refer to Note 9 for additional information on our operations in India. In the three months ended December 31...

  • Page 85
    ...into a product development agreement with PSA to collaborate on the development of certain vehicle platforms, components and modules. As a result of this agreement, in the three months ended March 31, 2013 we acquired the rights to certain technology and intellectual property for total consideration...

  • Page 86
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) with GM India's declining operations. These charges were recorded in our GMIO segment primarily in Automotive cost of sales. Refer to Note 9 for additional information regarding the triggering events of ...

  • Page 87
    ... accounting adjustments, which are not recorded in SPE trusts, GM Financial recognizes finance charge income, leased vehicle income and other income on the Securitized Assets and interest expense on the secured debt issued by the SPEs. GM Financial also maintains an allowance for credit losses...

  • Page 88
    ... income taxes (dollars in millions): December 31, 2013 December 31, 2012 Current Dealer and customer allowances, claims and discounts ...Deposits primarily from rental car companies ...Deferred revenue ...Policy, product warranty and recall campaigns ...Payrolls and employee benefits excluding...

  • Page 89
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes activity for policy, product warranty and recall campaigns (dollars in millions): Years Ended December 31, 2013 2012 2011 Beginning balance ...Warranties issued and ...

  • Page 90
    ... dividend payments and repurchases of our common stock. These restrictions can be mitigated based on various factors including but not limited to cash flows generated from operating and investing activities, prior restricted payments, our borrowing base coverage ratio, consolidated global liquidity...

  • Page 91
    ... the exchange offer up to a maximum additional interest rate of 0.5% per annum. HCT Notes As part of the establishment of the HCT to provide retiree healthcare benefits to certain active and retired employees in Canada, we issued notes to the HCT with a fair value of $1.1 billion in October 2011. We...

  • Page 92
    ... debt and the unsecured debt is based on quoted market prices, when available. If quoted market prices are not available, the market value is estimated by discounting future net cash flows expected to be paid using current risk-adjusted rates. (b) Includes a private securitization that GM Financial...

  • Page 93
    ... rates on bank lines and other unsecured debt ranged from 1.1% to 12.9% at December 31, 2013. Consolidated Interest Expense The following table summarizes interest expense (dollars in millions): Years Ended December 31, 2013 2012 2011 Automotive ...Automotive Financing - GM Financial ...Total...

  • Page 94
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Debt Maturities The following table summarizes contractual maturities including capital leases at December 31, 2013 (dollars in millions): Automotive Automotive Financing (a) Total 2014 ...2015 ...2016 ...

  • Page 95
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) We continue to pursue various options to fund and derisk our pension plans, including continued changes to the pension asset portfolio mix to reduce funded status volatility. Other Postretirement Benefit...

  • Page 96
    ... pension liability and a pre-tax increase in the net actuarial loss component of Accumulated other comprehensive loss. In September 2011 a plan which provided legal services to U.S. hourly employees and retirees was remeasured as a result of our labor agreement provisions which terminated the plan...

  • Page 97
    ... ...Benefits paid ...Foreign currency translation adjustments . . Business combinations ...Settlements ...Other ...Ending fair value of plan assets ...Ending funded status ...$ Amounts recorded in the consolidated balance sheets Non-current assets ...$ Current liabilities ...Non-current liabilities...

  • Page 98
    ... return on plan assets ...Amortization of prior service cost (credit) ...Recognized net actuarial loss ...Curtailments, settlements and other (gains) losses ...Net periodic pension and OPEB expense (income) ...$ Weighted-average assumptions used to determine benefit obligations Discount rate ...Rate...

  • Page 99
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) The following table summarizes estimated amounts to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in the year ending December 31, 2014 based on December 31, 2013 ...

  • Page 100
    ...Total Assets Assets Cash equivalents and other short-term investments ...$ - $ Common and preferred stocks (a) ...10,234 Government and agency debt securities (b) ...- Corporate debt securities (c) ...- Mortgage and asset-backed securities ...- Investment funds Equity funds ...72 Fixed income funds...

  • Page 101
    ... NonU.S. Plan Assets Assets Cash equivalents and other short-term investments ...$ Common and preferred stocks (a) ...Government and agency debt securities (b) ...Corporate debt securities (c) ...Mortgage and asset-backed securities ...Investment funds Equity funds ...Fixed income funds ...Funds of...

  • Page 102
    .../(Losses) Attributable to Assets Held at December 31, 2012 Assets Common and preferred stocks ...$ Government and agency debt securities ...Corporate debt securities ...Mortgage and asset-backed securities ...Group annuity contracts ...Investment funds Equity funds ...Fixed income funds ...Funds...

  • Page 103
    ...$ 179 Equity funds include funds that invest in U.S. common and preferred stocks as well as similar equity securities issued by companies incorporated, listed or domiciled in developed and/or emerging markets countries. Fixed income funds include investments in high quality and high yield funds as...

  • Page 104
    ..., development, financing, sale and/or management of income-producing real estate properties, both commercial and residential. These funds typically seek long-term growth of capital and current income that is above average relative to public equity funds. Significant Concentrations of Risk The assets...

  • Page 105
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Pension Funding Requirements We are subject to a variety of U.S. federal rules and regulations, including the Employee Retirement Income Security Act of 1974, as amended and the Pension Protection Act of...

  • Page 106
    ... program revenue, of approximately $2.6 billion and $2.9 billion. (c) Recorded in Accrued liabilities. (d) Recorded in Other liabilities and deferred income taxes. Guarantees We provide payment guarantees on commercial loans outstanding with third parties, such as dealers or rental car companies...

  • Page 107
    ... that could be material to our financial condition, results of operations and cash flows in any particular reporting period. GM Korea Wage Litigation Commencing on or about September 29, 2010 current and former hourly employees of GM Korea filed eight separate group actions in the Incheon District...

  • Page 108
    ...-down agreements are rescindable. The Plaintiff Dealers' initial pleading makes reference to a claim "not exceeding" Canadian Dollar $750 million, without explanation of any specific measure of damages. On March 1, 2011 the court approved certification of a class for the purpose of deciding a number...

  • Page 109
    ... our financial condition, results of operations and cash flows. At December 31, 2013 we estimate the remediation losses could range from $120 million to $230 million. Other Matters Brazil Excise Tax Incentive In October 2012 the Brazilian government issued a decree which increased an excise tax rate...

  • Page 110
    ... or purchase options. Rental expense under operating leases was $477 million, $474 million and $556 million in the years ended December 31, 2013, 2012 and 2011. Note 18. Income Taxes The following table summarizes income (loss) before income taxes and equity income and gain on investments (dollars...

  • Page 111
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Income Tax Expense (Benefit) The following table summarizes Income tax expense (benefit) (dollars in millions): Years Ended December 31, 2013 2012 2011 Current income tax expense (benefit) U.S. federal ...

  • Page 112
    ...and liabilities (dollars in millions): December 31, 2013 December 31, 2012 Deferred tax assets Postretirement benefits other than pensions ...Pension and other employee benefit plans ...Warranties, dealer and customer allowances, claims and discounts ...Property, plants and equipment ...Capitalized...

  • Page 113
    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Uncertain Tax Positions The following table summarizes activity of the total amounts of unrecognized tax benefits (dollars in millions): Years Ended December 31, 2013 2012 2011 Beginning balance ......

  • Page 114
    ...2012 and 2011 for GMNA, primarily relate to postemployment benefits to be paid. Year Ended December 31, 2013 GMNA recorded charges, interest accretion and other and revisions to estimates primarily related to cash severance incentive programs for skilled trade U.S. hourly employees and service cost...

  • Page 115
    ... capacity utilization in Canada. Our 2011 UAW labor agreement included cash severance incentive programs which were completed at March 31, 2012 for skilled trade U.S. hourly employees. A total of 1,400 skilled trade U.S. hourly employees participated in these programs at a total cost of $99 million...

  • Page 116
    ... of Interest income and other non-operating income, net (dollars in millions): Years Ended December 31, 2013 2012 2011 Interest income ...Net gains (losses) on derivatives ...Dividends and royalties ...Foreign currency transaction and translation gains (losses) ...Gains (losses) on securities and...

  • Page 117
    ... the purchase price between a direct reduction to shareholder's equity of $5.1 billion and a charge to Automotive selling, general and administrative expense of $402 million representing the premium. These shares were retired and returned to authorized but unissued status. In the year ended December...

  • Page 118
    ...CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Accumulated Other Comprehensive Loss The following table summarizes the components of Accumulated other comprehensive loss (dollars in millions): 2013 Tax Pre-tax Expense Net Amount (Benefit) Amount Years Ended December 31, 2012 Tax Pre-tax Expense Net...

  • Page 119
    ...per share, the applicable market value is calculated as the average of the closing prices of our common stock over the 40 consecutive trading day period ending on the third trading day immediately preceding the date of our mandatory conversion in 2013 or the date of our financial statements for 2012...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) calculating diluted earnings per share in the year ended December 31, 2013. In the years ended December 31, 2012 and 2011, we were required to use the two-class method for calculating earnings per share ...

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    ... FINANCIAL STATEMENTS - (Continued) The plan was amended in January 2014 to provide cash payment, on a going forward basis, of dividend equivalents upon settlement to active employees and certain former employees with outstanding awards as of the amendment date. Salary Stock Plan In the years ended...

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    ... the two-class method for calculating earnings per share because Series B Preferred Stock was a participating security. The three months ended December 31, 2013 included the following on a pre-tax (except tax matters) and pre-noncontrolling interests basis Benefit from the release of GM Korea wage...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued Intangible asset impairment charges of $1.8 billion in GME. Charge of $525 million for GM Korea hourly wage litigation. Charge of $402 million which represents the premium paid to purchase our common ...

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    ...in consolidation. The following tables summarize key financial information by segment (dollars in millions): At and For the Year Ended December 31, 2013 Total GM GMSA Corporate Eliminations Automotive Financial Eliminations GMNA GME GMIO Total Sales External customers ...$ 95,091 $ GM Financial...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) At and For the Year Ended December 31, 2012 Total GM GMSA Corporate Eliminations Automotive Financial Eliminations GMNA GME GMIO Total Sales External customers ...$ 89,912 $ GM Financial revenue ...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) For the Year Ended December 31, 2011 Total GM GMSA Corporate Eliminations Automotive Financial Eliminations GMNA GME GMIO Total Sales External customers ...$ 85,988 $ GM Financial revenue ...- ...

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    ...income taxes and interest (dollars in millions): Years Ended December 31, 2013 2012 2011 Accounts receivable ...Inventories ...Automotive equipment on operating leases ...Change in other assets ...Accounts payable ...Income taxes payable ...Accrued liabilities and other liabilities ...Total ...Cash...

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    GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Disclosure Controls and Procedures We maintain disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed in reports filed under the Securities ...

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